SyG (New York)
Posts: 4
Posts: 4
Posted:
What are the restrictions on using "reserve funds" in New York State?
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Reserve funds
Started by SyG • 3 replies • 1194 views
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TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Sy,
Welcome to the forum.
Are you in a condominium development or a single family home (HOA)?
Reserves are typically for the expected maintenance, repair and replacement of identified common elements.
The Association may normally borrow from the reserves providing they have also (at the same time) established a method of repayment (increased assessment over x years, special assessment, etc.).
In general, as I understand it, for NY The Board must disclose Useful Life and Replacement Costs of capital improvements and repairs (i.e., Reserve components) . Directors of Co-Ops must “periodically set aside reasonable sums” for Reserves.
Welcome to the forum.
Are you in a condominium development or a single family home (HOA)?
Reserves are typically for the expected maintenance, repair and replacement of identified common elements.
The Association may normally borrow from the reserves providing they have also (at the same time) established a method of repayment (increased assessment over x years, special assessment, etc.).
In general, as I understand it, for NY The Board must disclose Useful Life and Replacement Costs of capital improvements and repairs (i.e., Reserve components) . Directors of Co-Ops must “periodically set aside reasonable sums” for Reserves.
SyG (New York)
Posts: 4
Posts: 4
Posted:
We are a condo development.
My understanding is that reserve funds may not be used for normal maintenance.
My understanding is that reserve funds may not be used for normal maintenance.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Sy,
Normal maintenance, in my opinion, would be having the lawn mowed every week during the growing season.
Chemical shocking the lake to reduce weeds might be done occasionally. Therefore, in my opinion, reserves would be appropriate (if it was budgeted for in the reserves).
Is this the same complex from your previous thread, in 2011?
Normal maintenance, in my opinion, would be having the lawn mowed every week during the growing season.
Chemical shocking the lake to reduce weeds might be done occasionally. Therefore, in my opinion, reserves would be appropriate (if it was budgeted for in the reserves).
Is this the same complex from your previous thread, in 2011?
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